Nov 12 (Reuters) - Ovato Ltd OVT.AX :
* ANNOUNCES ITS INTENTION TO SHORTLY UNDERTAKE A $40 MILLION RIGHTS ISSUE TO EXISTING SHAREHOLDERS
* FILED APPLICATION FOR SCHEME OF ARRANGEMENT IN NSW SUPREME COURT FOR RESTRUCTURING AND RECAPITALISATION
* HANNAN FAMILY & ARE MEDIA PTY HAVE AGREED TO UNDERWRITE $35 MILLION OF RIGHTS ISSUE
* FUNDS RAISED WILL BE USED PRIMARILY TO PROVIDE FOR ADDITIONAL LIQUIDITY, REPAY DEBT AND UNDERTAKE OPERATIONAL INITIATIVES